Strengthening business confidences resulted in net absorption of office space across the top eight cities to 34 million square feet (msf) during 2016, according to an international property consultant Cushman & Wakefield.
Of the total uptake of office space, nearly 40% of the total net absorption took place in the last quarter of 2016. Bengaluru recorded the highest net absorption during the year, with Hyderabad surpassing Pune to emerge as the second-largest market in 2016. Delhi followed the two southern cities in terms of net absorption with activity witnessed in Gurgaon and Noida.
Demand in Mumbai bounced back in 2016 with the city witnessing a 4% increase in net absorption to 3.3 msf as expansion strategies of companies bore fruition in the form of fresh space uptake during the last three months of the year. The Thane-Belapur submarket accounted for 20% of the leasing activity, as the market continues to be attractive for occupiers. Competitive rentals hovering around USD 1/sf/month, planned infrastructure in the location and availability of quality Grade A space is attracting occupiers, especially in the IT-BPM, space to this belt.
Read more: Times of India
